5GC
Turning 5G connectivity
into an Applications
Platform
Agenda
u Next generation 5G Distributed Cloud Infrastructure
u Overview of 5GC corporation
u 5GC business models
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation
5G – Edge Compute infrastructure?
u What are the key applications supported by the incoming
5G – Edge Compute infrastructure?
u What is slicing?
u What are the key services provided by 5GC to its various
customers (e.g. Tcell, Babilon-Mobile, Beeline Tajikistan, City of
Dushanbe, VW Group, etc.)?
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation 5G –
Edge Compute infrastructure?
u What are the key applications supported by the incoming 5G –
Edge Compute infrastructure?
u What is slicing?
u What is 5GC?
u What are the key services provided by 5GC to its various
customers (e.g. Tcell, Babilon-Mobile, City of Dushanbe, VW
Group, etc.)?
Key aspects of 5G Infrastructure
New Radio Edge Network
Technologies Computing Slicing
Cloud Edge
+ Data Center
+
5G is more than a new radio access technology. Edge computing and
Network Slicing are key aspects to prevent operators to become
dumb bit pipe providers
Challenges with new radio technologies
u High-frequency spectrum provides extra capacity but comes with much
greater propagation limitations
u Trials of 3.5 gigahertz spectrum indicate that its range falls to about 400
meters outdoors, compared to the much higher range seen with current
spectrum, and has lower indoor penetration
u In a city such as Riyadh, Saudi Arabia:
• 2200 outdoor access sites with 4G ------------- more than 3000 needed with 5G
• 350 indoor access sites with 4G ---------------- more than 1000 needed with 5G
• 20% of access sites are using MW -------------- all sites must used fibers
• 32 core sites with 4G ---------------------------- about 100 Cloud Edge DC with 5G
u Without a new approach, the cost of a 5G Radio Access Network for a telco
service provider will be significantly higher than 4G
Network traffic density will grow by 10x
5G Capital Expenses
u Using the current approach, operators will have to pay more to deploy 5G networks
than they paid for 4G networks to achieve the same footprint
u Taking South Korea as an example – a country of 51 million people with excellent
fiber infrastructure that’s widely available to support the backbone of 5G services,
the cost of 5G is set to exceed $8 Billion in capital investments for a single service
provider
u To reduce the risk to service providers, the South Korean ICT ministry was active
in getting the operators to agree to an infrastructure sharing model as reported
recently. SK Telecom, KT, LG Uplus and SK Broadband will jointly build a 5G
infrastructure with significant cost savings
u For a government looking to optimize service at a national level, it makes sense to
eliminate spending duplication for basic performance parameters such as coverage
and data rate while maintaining competition at the service layer
u THREE FUNDAMENTAL WAYS TO ADDRESS THE 5G CAPITAL EXPENSES
1. Infrastructure sharing
2. New techniques to build the 5G radio and core infrastructure (OPEX and CAPEX reductions)
3. New sources of revenues (avoid to become a dumb bit pipe provider)
Key Building Blocks of 5GC infrastructure
Customer n
Customer 5
Customer 4
Dushanbe
Customer 3
Connected
Cars
Customer 2
Customer 1 Telco services
BABILON-MOBILE
Tcell
Distributed Cloud Infrastructure
5G Cloud Cloud
5GC
RAN Edge DCs Data Centers
Optical Transport
5GC customers are competing at the consumer services level
5G Radio Technologies
MBB IoT
Enhanced Mobile Ultra-Reliable and Low Massive Machine Type
Broadband (eMBB) Latency Communications Communications (mMTC)
• High Definition videos (URLLC) • Smart city
• Virtual Reality (VR) • Self-driving cars • Smart Parking
• Augmented Reality (AR) • Drone control • Street lights
• Fixed Wireless Access • Industrial control • Smart building
• Remote Surgery • Smart agriculture
LTE
5G NR NB-IoT and LTE-M
5GC Radio Access Technologies
u 5GC RAN will comprise NR and LTE-M / NB-IoT
u 5G NR
u LTE for Machine-Type Communications (LTE-M) and
Narrowband Internet of Things (NB-IoT)
5GC Network Topology
National Cloud National Cloud
Data Center Data Center Two or three
Cloud Cloud Cloud Cloud Cloud Cloud Cloud Cloud
Edge DC Edge DC Edge DC Edge DC Edge DC Edge DC Edge DC Edge DC Hundreds
5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G 5G
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Access
Node
Thousands
5GC Nation-wide infrastructure
National Data Centers
in Dushanbe and
Khujand
Note: At least 2 core
data centers are
needed in case of
catastrophic failure
(e.g. fire, earthquake,
bombing, etc.)
National Data Center POD
u Physical servers and racks from Inspur
u Networking white box switches from
Accton
u Software from Red Hat and Kaloom
u Applications software from multiple
vendors
u 800 servers per DC POD
u 40 leaf switches
u 20 spine switches
Cloud Edge Data Center
u Available with standard or in-chassis
cooling solutions
u Single or two racks configuration
u Specialized Cloud Edge Fabric with
embedded 5G Packet Core functions
u Sustain of up to 2.4 Tbps of 5G traffic
from RAN
u Support for 10 GbE, 25 GbE, 50 GbE, and
100 GbE physical interfaces toward RAN
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation 5G –
Edge Compute infrastructure?
u What are the key applications supported by the incoming 5G –
Edge Compute infrastructure?
u What is slicing?
u What is 5GC?
u What are the key services provided by 5GC to its various
customers (e.g. Tcell, Babilon-Mobile, City of Dushanbe, VW
Group etc.)?
By 2022
u 1.5 GB/Day Average Internet user
u Smart Factory: 1 PB of Data/Day
IoT and 5G Will Generate a Data Explosion
Smart Industrial
Cities IoT
Smart Connected
Buildings Cars
IoT: Wide Range of Requirements
Massive Machine Type Ultra-Reliable and Low Latency
Communication Communication
LOGISTICS, TRACKING AND FLEET REMOTE HEALTH
SMART BUILDING TRAFFIC SAFETY &
MANAGEMENT CARE
CONTROL
REMOTE
SMART SMART MANUFACTURING,
CAPILLARY NETWORKS INDUSTRIAL APPLICATION TRAINING, SURGERY
METER AGRICULTURE
& CONTROL
LOW COST, LOW ENERGY ULTRA RELIABLE
SMALL DATA VOLUMES VERY LOW LATENCY
MASSIVE NUMBERS VERY HIGH AVAILABILITY
Connected cars
8 Gb/s
4 TB per day
Autonomous Vehicles
are coming but a
reliable solution requires
ULTRA LOW LATENCY
1 ms
Summary of key 5G
applications
u Fixed-Wireless Applications –
Alternative to Fiber-to-the-home
u Entertainment: Gaming, Virtual
Reality, and Augmented Reality
u Connected Cars
u Smart Cities
u Wireless surveillance cameras
u Traffic control – Street lights
u Parking
u Smart Building
u Industrial control
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation 5G –
Edge Compute infrastructure?
u What are the key applications supported by the incoming 5G –
Edge Compute infrastructure?
u What is slicing?
u What is 5GC?
u What are the key services provided by 5GC to its various
customers (e.g. Tcell, Babilon-Mobile, City of Dushanbe, VW
Group, etc.)?
5G Network Slicing
Network Slicing
u Traditional telecom networks were built with physical nodes only, comprising one
“monolithic” network that was to provide all the services offered by the network
operator. The network was statically configured, mostly manually managed and a
“single tenant environment”.
u Network slicing is a new 3GPP paradigm which allows to create multiple logical
and fully isolated networks on top of a common shared physical infrastructure
u It permits to several communication and cloud service providers to share a
common infrastructure. The key benefits are:
• Economy-of-scale
• Sustain Pay-as-you-grow business model
• Permits flexible elastic resources of radio and
compute resources
• More cost-efficient solution than conventional monolithic network
Example of 5GC Network Slicing
Slice 1: STC
Slice 2: Mobily
Cloud Cloud Slice 3: Zain
Edge Core
5G Data Data
Slice 4: Volkswagen AG
RAN Center Center Slice 5: SABIC
Slice 6: Municipality of Riyadh
Slice 7: Daimler AG
Private fully isolated domain per customer
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation 5G –
Edge Compute infrastructure?
u What are the key applications supported by the incoming 5G –
Edge Compute infrastructure?
u What is slicing?
u What is 5GC?
u What are the key services provided by 5GC to its various
customers (e.g. Tcell, Babilon-Mobile, City of Dushanbe, VW
Group, etc.)?
5G Cloud corporation: 5GC
u A new kind of utility company for the Internet-of-things era
u Tcell, Babilon-Mobile, Beeline Tajikistan, City of Dushanbe, and MBuzz are
shareholders of 5GC – Key customers can also be important owners of the
consortium
u A shared distributed 5G Cloud infrastructure to strategically position 5GC as
the preferred access and cloud computing partners to Mobile Virtual Network
Operators (MVNO), large corporations, and governments.
5GC
Targeted customers
u Telco Service Providers
u Cloud Service Providers
u Large corporations
u Government
Note: 5GC is not providing any service directly to consumers
Next Generation 5G Distributed Cloud
u What are the key building blocks of the next generation 5G – Edge
Compute infrastructure?
u What are the key applications supported by the incoming 5G – Edge
Compute infrastructure?
u What is slicing?
u What is 5GC?
u What are the key services provided by 5GC to its various customers
(e.g. Tcell, Babilon-Mobile, City of Dushanbe, etc.)?
5GC Key Services
+
Fixed low monthly cost Fixed monthly cost
per class of connected for requested IT/Cloud
device Computing infrastructure
Telco service provider can charge Telco service provider can decide on
whatever he wants to end-customer whatever IT resources are needed
for itself and end-customers
5GC Devices
u 5GC is providing connectivity for 3 main classes of devices
1) Enhanced Mobile Broadband over 5G NR
2) Ultra-Reliable and Low-Latency Communications over 5G NR
3) Massive Machine Type Communications over LTE-M & NB-IoT
u 5GC Network Infrastructure can provide real-time data usage for each
connected 5G device
Massive Machine Type Ultra-Reliable and Low Latency
Communication Communication
LOGISTICS, TRACKING AND FLEET REMOTE HEALTH
SMART BUILDING MANAGEMENT TRAFFIC SAFETY &
CARE
CONTROL
REMOTE
SMART SMART MANUFACTURING,
CAPILLARY NETWORKS INDUSTRIAL APPLICATION TRAINING, SURGERY
METER AGRICULTURE
& CONTROL
5GC Data Center & Cloud Offerings - Levels
1. Colocation hosting (e.g. 5GC provides Space & Cooling)
2. Colocation hosting + Connectivity
3. Managed IT hosting (e.g. 5GC provides IT infrastructure,
Space & Cooling, and basic Data Center Infrastructure
Management)
4. Managed IT hosting + Connectivity
5. 5GC Virtual Data Center (e.g. 5GC provides and manages
the complete IT infrastructure
6. 5GC Private Cloud (e.g. 5GC provides a dedicated private
cloud to a customer over a slice) Customer
7. 5GC Public Cloud (e.g. 5GC provides a public multi- Value
tenant cloud to a customer over a slice
Agenda
u Next generation 5G Distributed Cloud Infrastructure
u Overview of 5GC corporation
u 5GC business models
u Cost of Cloud Edge infrastructure
u Cost of 5G Radio Access Network
u Financial overview
5GC Revenue Models
2 sources of revenues
$ $
5GC Revenues 5GC Revenues
for Data Center for connected
and Cloud Services devices
Possible Business models
Fixed Revenue Pay-as-you-Grow
Infrastructure Sharing
Monthly cost
Correlation NO YES YES (partly)
between revenues
and costs
5GC client freedom YES NO YES
to set pricing for
its customers
5GC client can YES YES YES
decide on customer
services
A 5GC customer can decide to either pay a Fixed Infrastructure
Monthly cost or a Pay-as-You-Grow business model
Initial Cost for 5G New Radio Access
OLD
Moving toward a
C-RAN
Architecture
Cloud Edge DC NEW
C-RAN Architecture
u To improve deployment flexibility and operation efficiency, a new
mobile architecture, C-RAN has been introduced and thus fronthaul
becomes the focal point of 5G’s future
u Centralizing the BBUs in a Cloud Edge DC allows the BBU pool to share
the same physical infrastructure, including space, electricity and
cooling systems
u Fronthaul and C-RAN technologies may not be a mandatory requirement
for 5G, but it is a critical and economy-of-scale solution for 5G mass
rollout
u Most of the developed countries have high penetration rate of mobile
subscriptions, and revenue growth re-acceleration is almost impossible
to achieve through enticing more subscribers with a faster mobile
service (5G)
5G NR Massive MIMO
SUMMARY
u Saudi Arabia can have the first 5G Fully Distributed Cloud Infrastructure in the
world
u 5GC can provide a National 5G Infrastructure shared among existing mobile
operators
u Moreover, existing operators can be shareholders/owners of this shared
infrastructure
u 5GC infrastructure comprises:
q A new 5G C-RAN infrastructure
q A Fully Distributed Cloud Infrastructure
u 5GC permits existing operators to compete by offering their own specific
services: Videos, Gaming, Augmented Reality, Virtual Reality, etc.
Sabir Saleem
General Manager
#313, Al Nasr Plaza
Dubai, UAE.
Sabir.Saleem@mbuzztech.com
+ 971 55 2113445
